The second South African Bank Lending Practices Survey (BLPS), completed by senior decision makers in banks, has been completed. The survey continues to provide insight into the sentiment of bankers in South Africa and remains designed to provide an indication of the banks’ reactions and intentions in the provision of credit.
The survey follows the approach of similar international quarterly surveys done in Canada, America, Europe and Britain, but has been adapted to apply to the South African market.
The BLPS is compiled using data at an aggregated level for banks, using a diffusion index approach, with each bank’s response being weighted by the asset value.
This is the second BLPS which should over time, provide a useful measure to the credit industry and assist with understanding the importance of sentiment in the credit landscape.